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The best savings accounts right now:
Ally Bank: Best savings account overall
Vio Bank: Best savings...

The best savings accounts right now:
Ally Bank: Best savings account overall
Vio Bank: Best savings account for high APY
Capital One: Best savings account for kids/teens
Synchrony Bank: Best savings account for college students
Ally CD: Best savings account for long-term goals
Picking the best savings account to store your money is nearly as important as how much you save. Fees can eat into your cash, but a good interest rate can help grow it.
Many of us are guilty of settling for the savings account at the bank that holds our checking account. While there can be advantages to this — speedy cash transfers, most of all — it can be limiting.
Below you'll find our picks for the best savings accounts right now, which includes high-yield savings accounts and certificates of deposit (CDs) — two types of savings products that can help you earn up to 20 times more in interest than a traditional savings account. Each of these accounts has no fees, FDIC insurance up to $250,000, and online or mobile app access.
The most common way to access cash in a savings account is through electronic transfers to an internal or external checking account. With some accounts, an ATM card is provided or checks can be requested.
Keep in mind that most savings accounts limit the number of transfers and withdrawals to and from a checking or other savings account to six per statement cycle. With a CD, you cannot add additional money to the account or withdraw any money between the end of the initial funding period (usually between 10 and 14 days) and the maturity date without forfeiting your interest earnings.
Ally Bank: Best savings account overall
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Why it stands out: Ally has been a power player in the high-yield savings space for a few years now, and it consistently nabs top awards for online banking. It's a particular favorite among millennials, who tout its accessibility and ease of use. You can deposit checks through the mobile app and open multiple accounts in minutes with $0 down. Ally's suite of products also includes a checking account, home and auto loans, and investing accounts.
Rate: 1.50%
What to look out for: An excessive transfer charge. Each transfer over the federal limit of six per statement cycle will incur a fee of $10.
Vio Bank: Best savings account for high APY
Why it stands out: Vio offers the top APY for high-yield savings accounts right now, and it doesn't charge a monthly management fee.
Rate: 1.70%
What to look out for: Minimum deposit. You need at least $100 to open an account. You'll also receive limited customer support. Unlike many online banks, Vio doesn't offer live chat with representatives. Also, bear in mind that interest rates fluctuate with the federal funds rate, which means you aren't necessarily guaranteed to earn the highest rate with this account forever. There are still good reasons to open a high-yield savings account when interest rates are low, but be aware they can change.
Capital One: Best savings account for kids/teens
Why it stands out: Kids under 18 can use Capital One's Kids Savings Account to deposit and store money with a little oversight from Mom and Dad. There are no fees and all balance tiers earn the 0.50% APY — much higher than kids' savings accounts at competing banks.
The mobile app allows kids to deposit checks and play with savings interest calculators to see how their money could grow. When the child turns 18, the account automatically becomes a Capital One 360 online savings account earning 1.50% APY.
Rate: 0.50% APY
What to look out for: Parental controls. Kids have their own online login to the account, but money can't be transferred without parental approval.
Synchrony Bank: Best savings account for college students
Why it stands out: Synchrony Bank's high-yield savings account comes with an ATM card and doesn't limit the number of transactions or withdrawals that can be made via ATM, so it acts like a checking account. The bank will reimburse up to $5 a month in ATM fees charged by other financial institutions. But even better: All balance tiers earn 1.50% APY.
Rate: 1.50% APY
What to look out for: Non-ATM transfer limits. If you're making transfers to other accounts electronically, you're limited to six per statement cycle. Also, you cannot swipe the ATM card at retailers like a debit card.
Ally CD: Best savings account for long-term goals
Why it stands out: If you have money you won't need until a future date (and not before then), a CD is a good option for earning more. CDs lock away your money for a set amount of time, and you can secure a fixed interest rate that won't fluctuate along with the federal funds rate. Note that if you need to withdraw your money before the term ends, however, you'll have to pay a penalty fee.
Ally offers some of the highest rates on long-term CDs paired with no minimum deposit requirement. For CD terms of 1 to 5 years, you'll be hard pressed to find a higher rate right now.
Ally also offers three types of CDs: high-yield CDs, Raise Your Rate CDs, and No Penalty CDs.
High-yield CDs lock in your rate when you create an account. Raise Your Rate CDs allow you to increase your rate at least once if Ally's rates go up. If you withdraw funds before your term ends with a high-yield or Raise Your Rate CD, you'll pay a penalty. However, No Penalty CDs let you withdraw funds early without paying fees.
Rate: The rates for Ally high-yield CDs are as follows:
3 months: 0.50% APY
6 months: 0.75% APY
9 months: 1.00% APY
1 year: 1.50% APY
18 months: 1.60% APY
3 years: 1.55% APY
5 years: 1.60% APY
Here are the Raise Your Rate terms and current rates:
2 years: 1.50% APY. You may increase your rate once during the two-year period.
4 years: 1.50% APY. You may increase your rate twice during the four-year period.
All No Penalty CDs come with an 11-month term. Here are the No Penalty CD terms and rates:
Earn 1.40% APY when you open a CD with under $5,000
Earn 1.50% APY when you open a CD with $5,000 to $24,999
Earn 1.55% APY when you open a CD with at least $25,000
What to look out for: Types of CDs. Ally offers more variety than most banks, so be sure to choose a CD that fits your banking needs. For example, you don't want to let higher rates convince you to sign up for a CD with a longer term if you think you'll need your money relatively soon, because then you could pay a penalty for withdrawing early. Think about how long you're comfortable storing your money, whether you want the option to increase your rate, and whether you want a No Penalty CD in case you need access to your money sooner than expected.
Other savings accounts we considered and why they didn't make the cut:
Wealthfront: This account allows unlimited transfers and an initial deposit of just $1, but its rate has dropped significantly to 0.35%.
Betterment: This robo-adviser's high-yield cash account, which requires a $10 initial deposit but doesn't limit transfers, is generally a good deal. While Betterment plans to launch a checking account, it currently does not offer other financial products, like loans.
Discover Bank: While it offers a respectable rate of 1.40%, Discover's high-yield savings account isn't as beloved as some of our top picks.
Marcus by Goldman Sachs: While this high-yield savings account is a contender for fan favorite, the new mobile app doesn't support check deposit.
BrioDirect: This high-yield savings account offers a respectable rate of 1.55%, but you'll need an initial deposit of $25.
Wells Fargo Way2Save: While this account comes with ATM access, it offers a dismal 0.01% APY and charges a $5 monthly fee unless certain balance or auto-transfer requirements are met.
Chase Savings: Despite access to thousands of physical branches and ATMs, Chase offers just 0.01% APY on its savings account and charges a $5 monthly fee unless certain balance or auto-transfer requirements are met.
Bank of America: Despite access to thousands of physical branches and ATMs, Bank of America's savings account earns just 0.03% APY and charges an $8 monthly fee unless you keep a $500 daily balance.
HSBC Direct: The 1.70% APY makes this high-yield savings account a good choice for high earning potential, but it's not the best no-fee, low minimum balance option out there.
CIBC Bank: To earn the 1.45% APY on CIBC's high-yield savings account, you only need to maintain a balance of $0.01, but you have to put down $1,000 to open the account in the first place.
Citizens Access: Despite offering a respectable 1.50% APY, the minimum deposit to open a high-yield savings account here is $5,000. Citizens Access offers high APYs on its CDs, ranging from 1.50% to 1.65%, but all terms require a minimum deposit of $5,000.
Sallie Mae: Sallie Mae's CDs offer between 1.20% and 1.35% APY, but the minimum deposit to open an account is $2,500 and there isn't a no-penalty CD available. Sallie Mae does offer a fine high-yield savings account earning 1.40% APY, however.
MySavingsDirect: This high-yield savings account earns 1.00%, and there are others with better user experience and similar features that earn more.
Barclays: Barclays' CDs offer up to 1.40% APY, but you won't find the variety of CD types like you would with Ally. You can also open a Barclays high-yield savings account with a 1.50% APR (rates current as of 4/24/2020).
PurePoint Financial: PurePoint's rates are on par with the best CDs and high-yield savings accounts on our list, but its $10,000 minimum deposit could be a major drawback for more modest savers.
SFGI Direct: Although SFGI Direct's high-yield savings account earns a 1.71% APY, it requires $500 to open an account.
Credit Karma: This high-yield savings account earns just 0.56%, and as a credit and loan company, Credit Karma's expertise is not in traditional banking.
Personal Capital: This is technically a cash account, which makes it easy to sweep some money into investments, but it only offers a 0.05% APY on your savings.
CIT Bank Savings Builder: This account requires a $100 monthly deposit or a $25,000 daily balance to earn the top APY. It's a great account to create savings momentum, but not the best overall.
HMBradley: This hybrid checking and savings account offers high rates, but you have to save at least 20% of your deposits to earn the maximum APY of 3%.
American Express CD: There's no minimum initial deposit to open an American Express CD, but the rates aren't as high as Ally's rates.
Frequently asked questions:
Why trust our recommendations?
At Personal Finance Insider, we strive to help smart people make the best decisions with their money. We spent hours comparing and contrasting the features and fine print of these savings accounts so you don't have to.
We understand that "best" is often subjective, however, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too.
How did we chose the best savings accounts?
We reviewed over two dozen banks and financial institutions and found that the best offerings are at online banks, in large part because they offer much higher interest rates and fewer fees. We ultimately narrowed our focus to banks offering at least 1% APY on their savings products (high-yield savings accounts and CDs included), with the exception of kids' savings accounts.
For this list, we did not consider credit unions — though they tend to offer high interest rates on savings accounts and CDs, many limit membership to people who work in a specific industry or live in a designated area.
What bank offers the best savings account?
Because of its ease of use, high customer satisfaction, and good interest rate, Ally Bank has one of the best savings accounts overall. However, the "best" savings account for you will depend on your goals and priorities. Some people prefer to have a savings account at a bank that offers other financial products, like loans or checking or investment accounts, so we took this into consideration as well.
What is the best savings account to have?
The best savings account to have is one that does not charge excessive (or any) fees, is easy to access, and earns an interest rate above the national average of 0.09%. Interest rates on traditional and high-yield savings accounts are variable, however, so it's important to consider other features of an account before opening it for a high APY.
If you don't need immediate access to your cash, you may want to consider a CD to potentially lock in a higher interest rate. Otherwise, for cash that you will need to access on a regular basis — whether you're adding or withdrawing money from the account — a high-yield savings account is the best option.
Are online savings accounts safe?
Just like a savings account opened through a brick-and-mortar bank, most online savings accounts are FDIC insured up to $250,000. The account is set up through a bank's website using the same information required at a physical branch — name, date of birth, Social Security number, driver's license or passport number, and address — but you will also need to create a username and password for online access.
Are high-yield savings accounts worth it?
A high-yield savings account keeps your money safe from market risk, is insured by the FDIC (usually up to $250,000, but up to $1 million in some cases), and gives you a shot at beating inflation with annual percentage yields over 1.50%.
The only potential downsides of a high-yield savings account would be maintenance fees that eat into your interest payments (though most accounts are fee-free) or restrictions on the monthly transfer limit or time it takes for your money to get to your checking account.
Tanza Loudenback has been writing about money every day for more than three years. She is an expert on strategies for building wealth and financial products that help people make the most of their money. She is a candidate for the CFP® certification.
More savings and retirement coverage
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When to save money in high-yield savings
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The best high-yield savings accounts right now:
Ally Bank: Best high-yield savings account overall
Vio Bank: Best high-yield savings account APY
Marcus by Goldman Sachs: Best high-yield savings account for ease of use
CIT Bank Savings Builder: Best high-yield savings account for automatic savings
Synchrony Bank: Best high-yield savings account for ATM access
You really can't go wrong with a high-yield savings account. If you've decided to store your money in a high-yield account, where it's growing but still accessible, you're already doing better than the 75% of Americans who are leaving money on the table.
As more banks and financial companies crowd into the high-yield savings space, it has become an all-out battle to offer the best account features coupled with the highest interest rates — and that's great news for savers.
It's important to note that, unlike certificates of deposit (CDs), you do not lock in a fixed interest rate when you open a high-yield savings account. The annual percentage yield (APY) is variable since it's based on what the Federal Reserve does. So while it's smart to look at interest rates when comparing high-yield savings accounts, it's not the be-all and end-all.
Note also that high-yield savings accounts' rates have been decreasing along with the federal funds rate in the first quarter of 2020. But considering these accounts still offer higher rates than your average brick-and-mortar bank, it's still a good idea to use them to save money.
Below you'll find our picks for the best high-yield savings accounts right now. Each of these accounts is free of monthly maintenance fees, insured by the FDIC, and appropriate for modest and super savers alike. Users can access each of these accounts online or through an app.
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Best high-yield savings account overall
Ally Ally Online Savings AccountWhy it stands out: Ally has been a power player in the high-yield savings space for a few years now, and it consistently nabs top awards for online banking. It's a particular favorite among millennials, who tout its accessibility and ease of use. You can deposit checks through the mobile app and open multiple accounts in minutes.
Accounts are FDIC insured up to $250,000 per user. If you're married with a joint account, you're insured up to $500,000.
Ally makes it easy to save for specific goals. Assign each account a nickname, like "Emergency Fund" or "Travel Account" to track your progress and stay motivated. You may decide to open a separate account for each goal, but Ally has a bucket feature that allows you save for multiple goals in one account.
Ally is also known for providing strong customer service. You can call a representative or chat with a real person online or through your app 24/7.
What to look out for: An excessive transfer charge. Like most banks, Ally limits the number of transfers in and out of its high-yield savings account to six times per statement cycle. Each transfer over the limit will incur a fee of $10.
Best savings account for high APY
Vio Vio Bank Online High-Yield Savings AccountWhy it stands out: Vio offers the top APY for high-yield savings accounts right now, and it doesn't charge a monthly management fee.
What to look out for: Limited customer support. Unlike many online banks, Vio doesn't offer live chat with representatives. Also, bear in mind that interest rates fluctuate with the federal funds rate, which means you aren't necessarily guaranteed to earn the highest rate with this account forever. There are still good reasons to open a high-yield savings account when interest rates are low, but be aware they can change.
Best high-yield savings account for ease of use
Goldman Sachs Marcus by Goldman Sachs High-Yield SavingsWhy it stands out: This account is a contender for fan favorite. The company launched an easy-to-use mobile app in early 2020, making transfers and tracking simpler for users. Marcus doesn't require you to maintain a minimum balance, although you'll need to deposit at least $1 to start earning interest.
What to look out for: No mobile check deposit. If you want to deposit a paper check, you'll have to put the money in an external bank account and transfer the funds to your Marcus account.
Best high-yield savings account for automatic savings
CIT CIT Bank Savings BuilderWhy it stands out: This account rewards automatic savings with a high APY. After you make an initial deposit of $100 to open an account, you'll earn the top APY for a brief introductory period. After that, you'll need to set up automatic transfers or direct deposit of at least $100 a month (or keep a balance of $25,000) to keep earning 1.55%. If you're serious about making saving a habit, this is a great tool to get started.
What to look out for: Minimum balance requirements. If you don't set up automatic transfers of $100 a month and you have less than $25,000 in the account, you'll earn 1.09%.
Best high-yield savings account for ATM access
Synchrony Bank Synchrony High-Yield Savings AccountWhy it stands out: High-yield savings accounts usually don't allow you to pull out cash easily. Synchrony Bank gives account holders a debit card to use at ATMs and doesn't limit the number of transactions.
What to look out for: ATM fees. While Synchrony won't charge you for ATM withdrawals on its end, other banks or operators may. Synchrony will only reimburse up to $5 in ATM fees per statement cycle.
Other high-yield savings accounts we considered and why they didn't make the cut:
Capital One 360: This solid high-yield savings account offers a 1.50% APY, but it doesn't provide 24/7 customer service with real people like Ally does.
Betterment: This robo-adviser's high-yield cash account doesn't limit transfers. However, Betterment requires a $10 initial deposit and its APY is just 0.30%.
Wealthfront: This account offers unlimited transfers in a statement cycle, but its APY is lower than competitors' at 0.35%.
Discover Bank: While it offers a respectable rate of 1.40%, Discover's high-yield savings account isn't as beloved as some of our top picks.
Barclays: A fine high-yield savings account with a 1.50% APY, it lacks distinguishing factors (rates current as of 4/24/2020).
American Express: With a solid 1.50% APY, this account is a good option if you don't mind not having mobile access.
HSBC Direct: The 1.70% APY makes this high-yield savings account a good choice for high earning potential, but it's not the best no-fee, low minimum balance option out there.
CIBC Bank: To earn the 1.45% APY on CIBC's high-yield savings account, you only need to maintain a balance of $0.01, but you have to put down $1,000 to open the account in the first place.
Fitness Bank: This unique high-yield savings account determines your APY by the number of steps you take on an average day. While there's potential to earn up to 1.90% on your money, it's conditional on your level of commitment.
Citizens Access: Despite offering a respectable 1.50% APY, the minimum deposit to open a high-yield savings account here is $5,000.
MySavingsDirect: This high-yield savings account earns 1%, but there are others with better user experience and similar features that earn more.
BrioDirect: The 1.55% APY makes this account a decent choice for savers, but some customers have complained that their initial funds transfer took longer than expected.
SFGI Direct: Although SFGI Direct's high-yield savings account earns a 1.71% APY, it requires $500 to open an account.
Credit Karma: This high-yield savings account only earns 0.56%, and as a credit and loan company, Credit Karma's expertise is not in traditional banking.
Personal Capital: This is technically a cash account, which makes it easy to sweep some money into investments, but it only offers a 0.05% APY on your savings.
HMBradley: This hybrid checking and savings account offers high rates, but you have to save at least 20% of your deposits to earn the maximum APY of 3%.
Frequently asked questions:
Why trust our recommendations?
Personal Finance Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.
How did we choose the best high-yield savings accounts?
There are a lot of high-yield savings accounts out there. Through our research, we've found that the best high-yield savings accounts are offered by banks with a strong online presence, robo-advisers, and other internet-only financial companies.
In addition to polling Business Insider employees for their favorite picks, we reviewed high-yield savings accounts at nearly two dozen institutions to identify the strongest options. We also cross-referenced our list against popular comparison sites like Bankrate and Nerdwallet to make sure we didn't miss a thing.
While interest rates are an important aspect of any high-yield savings account, several offer the same annual percentage yield (APY). To differentiate between them, we also considered minimum deposit and balance requirements, transfer limitations, and any other standout features. Importantly, we didn't consider any high-yield savings accounts that impose monthly maintenance fees.
Are high-yield savings accounts worth it?
Yes — a high-yield savings account has very few downsides, if any. There's no risk that you'll lose money, your account is insured by the FDIC (usually up to $250,000, but up to $1 million in some cases), and it gives you a shot at beating inflation.
The only time a high-yield savings account may not be worth it is if you're paying excessive maintenance fees that eat into your interest payments or you find yourself restricted by the monthly transfer limit or time it takes for your money to get to your checking account.
Which banks have the best savings interest rates?
Generally you'll find the best savings interest rates at online banks. Nationally, the average traditional savings account earns just 0.09% APY. The best high-yield savings accounts offer an APY of at least 1%.
If you're more comfortable banking with a brick-and-mortar, a traditional savings account may be a better option for you. Just know that you may not be getting the best possible interest rate.
How often do high-yield savings rates change?
Interest rates on high-yield savings accounts closely follow the federal funds rate. That is to say, rates are variable and can change multiple times per year at the whim of the Federal Reserve.
The Fed meets eight times a year and decides whether to increase, decrease, or leave interest rates untouched. If the Fed cuts rates, the APY on your savings account can drop within days. When rates are lower, you won't earn as much interest on your savings. But that doesn't mean you shouldn't save at all. When interest rates inevitably go back up, you'll see a greater return on your money than if you started from scratch.
Because the Fed spent several years raising rates since the Great Recession, it cut interest rates three times toward the end of 2019 in an effort to regulate the economy and side step another recession, and it's already slashed rates twice in 2020. It's nearly impossible to predict with certainty which way rates will go, but you can bet they're going to change one way or another.
Is there a 5% interest savings account?
There is no savings account that offers a 5% interest rate. Today, most high-yield savings accounts top out around 1.85% APY. If you want a higher return and you don't need immediate access to your money, you may consider putting it in a certificate of deposit (CD) or investing in the market.
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Tanza Loudenback has been writing about money every day for more than three years. She is an expert on strategies for building wealth and financial products that help people make the most of their money. She is a candidate for the CFP® certification.Join the conversation about this story » NOW WATCH: Why Pikes Peak is the most dangerous racetrack in America

Saving three to six month's worth of expenses in an emergency fund can be a...

Saving three to six month's worth of expenses in an emergency fund can be a daunting task, especially when you aren't earning much.
Saving through automatic deposits is a great way to keep your emergency fund growing over time, no matter how much you're depositing.
To grow savings without taking money from your budget, use cash-back credit cards or bank bonuses to start your emergency fund.
See Business Insider's picks for the best high-yield savings accounts »
Building an emergency fund is one of the first steps to recession-proofing your finances, and making sure you'll be able to weather any storm. But it's not easy, especially when you're on a tight budget.
An emergency fund generally consists of three to six months' worth of expenses. The more, the better — one expert even advises having 12 months of expenses in uncertain economic times like these. Choose the amount you'd like to save, set a goal for yourself, and keep the money in a separate account from your regular checking, preferably a high yield savings account that will grow your savings over time.
Some people have gotten creative, using credit cards or tax refunds to start or pad their emergency fund. Here are several tips to put together your cash buffer, no matter how much you earn.
1. Automate your savings
Making your savings automatic is critical to building them without thinking. Writer Elizabeth Aldrich built a $20,000 emergency fund in six months, and says that saving was an important part of her method.
"I set up my checking account to transfer $125 into my savings account every Thursday, right before the weekend, which is usually when I spend the most money," she writes for Business Insider. She set up the direct deposits to go into a high-yield savings account.
Then, the money grew in two ways: with her deposit each week, and with the interest her money earned. Even making small automatic deposits each week can add up quickly, and even snowball with interest.
2. Save your tax refund
When she didn't make enough income to save anything, writer Laura McCamy started her emergency fund with just her tax refund that she was planning to spend. "One year, about 12 years ago, I was due a tax refund of $5,000 from the IRS," she writes. "Before the money even hit my bank account, I had come up with $15,000 worth of things I wanted to spend it on."
But then, a friend told her to put it in savings for three months, and see if she still wanted to spend it later. She did it, but after having savings, she didn't want to spend it. "My tax refund metamorphosed from a fantasy windfall to money that gave me security," she writes.
3. Use cash-back credit cards
Using credit cards responsibly and getting rewards through cash-back cards can be a great way to build an emergency fund without having to save much of your income.
Business Insider writer Clint Proctor used cash-back credit cards to build his emergency fund, especially using the sign-up bonuses. "Many of the cash-back cards would offer cash bonuses of $200 or more. And once we'd earned those bonuses, we'd transfer the money directly to our emergency savings account," Proctor wrote.
The cards continue to earn money as purchases are made, which can then be saved. Proctor writes that this strategy only works if you're diligent about paying off your cards — accruing interest on your cards and paying more for purchases could negate any earnings and savings.
4. Live on last month's paycheck
Financial planner Elaine King was living in New York City on a small salary when she was starting her career, but knew she needed an emergency fund. She cut back her spending by budgeting to spend only the money from the paycheck she already had in her bank account from last month, rather than planning to spend the paycheck she expected to get.
"I marked the days that the bills were due and set a schedule for shopping. I switched from credit cards to debit cards so I could avoid spending money I did not have," she wrote. It helped King "avoid overspending while also leaving a cushion."
5. Use savings account opening bonuses
Writer Zina Kumok used bank sign-up bonuses, generally ranging from $100 to $300, to start her savings when she was making a small salary at a newspaper.
"I open a bank account, add money to it, switch my direct deposit to that account, and then receive the bonus around 90 days later," she writes for Business Insider. There are some catches to this, strategy, however, and she writes that anyone wanting to try it needs to be diligent about writing down every account you open, saving a portion of the earnings because they are taxable, and watching out for fees.
While it's not the quickest way to build an emergency fund, Kumok says it worked for her when saving her income wasn't an option. "Within a year, I had saved enough to stash away a respectable emergency fund," she writes.
More savings and retirement coverage
How to retire early
The best high-yield savings accounts right now
The banks with the best CD rates
When to save money in high-yield savings
Join the conversation about this story » NOW WATCH: Why electric planes haven't taken off yet